Air New Zealand 2008 Annual Report Download - page 17

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4. TAXATION EXPENSE
GROUP
2008
$M
GROUP
2007
$M
COMPANY
2008
$M
COMPANY
2007
$M
Current taxation expense
Current year (1) 15 44 92
Adjustment for prior periods 5 11 10 10
4 26 54 102
Deferred taxation expense
Origination and reversal of temporary differences (93) (100) (93) (48)
Reduction in tax rate 3 26 7 6
(90) (74) (86) (42)
Total taxation (expense)/credit recognised in earnings (86) (48) (32) 60
Reconciliation of effective tax rate
Profit/(loss) before taxation 304 269 216 (113)
Taxation at 33% (100) (89) (71) 37
Adjustments
Non-deductible expenses (1) (1) (31) (6)
Non-taxable income 1 - 50 18
Impact of corporate tax rate change* 3 26 7 6
Under provided in prior periods 5 11 10 10
Other 6 5 3 (5)
Taxation (expense)/credit (86) (48) (32) 60
* The New Zealand corporate income tax rate reduces to 30% from the commencement of the 2009 income year. The impact of the tax rate change
included in the 2007 financial statements was calculated based on the forecast deferred tax liability for Air New Zealand at 30 June 2008 (which
was subject to a number of variables including foreign exchange movements). An adjustment has been made in the current year to reflect the actual
deferred tax liability as at 30 June 2008.
IMPUTATION CREDITS
GROUP
2008
$M
GROUP
2007
$M
COMPANY
2008
$M
COMPANY
2007
$M
Balance at the beginning of the year 92 148 4 56
Taxation (refunds)/payments (33) 19 (32) 19
Credits attached to distributions (49) (77) 25 (77)
Other 3 2 3 6
Balance at the end of the year 13 92 - 4
AIR NEW ZEALAND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR TO 30 JUNE 2008
15